CO129-371 - Public Offices - 1910 — Page 435

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[This Document is the Property of His Britannic Majesty's Government.]

[B]

CHINA RAILWAYS.

CONFIDENTIAL.

(8275)

No. 1.

432

Race Rce 18 MAR 10,

[March 3.]

SECTION 1.

(No. 47. Confidential.) Sir,

Sir Edward Grey to Sir C. MacDonald.

Foreign Office, March 3, 1910. I TOLD the Japanese Ambassador to-day that the Russian Government wished the Chinchow-Aigun Railway proposal to be dropped, and would like the Chinese Government to take up instead a project for a line from Kalgan by Urga to Kiakhta. Their idea apparently was that the attention of the American financiers and Pauling's, who were at present interested in the Chinchow-Aigun Railway, should be diverted to the Kalgan line, and that they should be given some share in it.

I told the Ambassador that, so far as I knew, this information had been communicated to us confidentially by the Russian Government, and I was therefore giving it to him in the same form; though I thought it quite probable that the Russian Government might already have communicated their views to the Japanese Government and the United States Government.

Count Benckendorff had expressed the hope that we should be favourable to the Kalgan project. I had replied that I was not aware of any reason why we should object to it, but before giving a definite answer I should like to look into the question. I told the Japanese Ambassador that I did not wish to be committed to support any railway in this region without knowing the view of the Japanese Government with regard to the railway; and I should therefore be glad if the Ambassador could tell me how the Kalgan project was regarded by his Government.

The Ambassador said that before the Russo-Japanese war the Russian Govern- ment had been keen about the construction of this line, and the Japanese Government had then looked upon it with great apprehension. In those days Russia was considered at Peking to be all-powerful, and the building of the railway would have strengthened this impression. He could not say to what extent his Government would still enter- tain an apprehension of this sort, in the light of what had occurred since the project was first put forward. But in any case the proposed railway would be so far from their own railway that, even if they did object to the proposal, it would be difficult for them to state reasons for their opposition.

I took the opportunity of telling the Ambassador that a representative of Pauling's had intended to go to St. Petersburgh to see whether he could overcome the Russian objections to the Aigun Railway, and Pauling's had asked for our support. We could not give support, but of course we had no objection to their discussing the matter with the Russian Government if the latter were willing to see their repre- sentative.

The Ambassador expressed himself very sensible of the fact that the attention of Pauling's and other parties interested in the Chinchow-Aigun Railway was now diverted from Japan to Russia.

[2667 c-1]

I am, &c.

E. GREY.